Steve's Trading Diary - November 2006
11/30 Bought IIG on the positive open. It faded back a little bit but it was nothing to get discouraged about. It may take it a day or two to get started but we're still anticipating it will form a J-Hook pattern and move up past the recent highs. Continue to hold this one but if it closes back down below the $22.20 level, it would tell us that the Bears were back in control and it would be time to come out of the position. 12/1 It consolidated but closed near the high end of its trading range on Friday. This one can be bought aggressively if it opens positive on Monday. 12/4 It came up nicely and should have been bought aggressively as it traded positive on Monday. If not, it can still be bought with the anticipation that a J-Hook pattern is starting in its next run-up. Buy this one again on strength on Tuesday. 12/5 It traded higher on Tuesday and closed at the recent highs. If it breaks out, look for the same magnitude move to the upside as we saw when it moved from the $15 level to the $24 level. 12/6 It's fulfilling the J-Hook pattern with a nice, strong move up through its recent high levels. Continue to hold while anticipating that it will keep moving to the upside. 12/7 Continue to hold, use a close below Thursday's low as your stop. 12/8 It's still in an uptrend. Continue to look for a breakout to the upside. 12/11 It got a little bit toppy. This one should be closed out on any trading below Monday's low of $24.85. This one needs to open higher and trade higher to continue to hold. 12/12 It opened lower and came back up. It did trade off a little bit but continue to hold if you still own it. At this point, close it if it closes back below the open of $24.90 from Friday. Be ready to close it out on any weak signals. 12/13 It's still in a nice strong uptrend, continue to hold. At this point we don't want to see any trading below Wednesday's low of $25.60. Use that as your stop. 12/14 It consolidated a little bit with the Spinning Top/Harami. We need to see confirmation that this is the top. It's at the top end of the trading channel. We don't want to see it trade more than halfway down the last large bullish candle. 12/15 It's starting to get a little bit toppy but is still in the uptrending channel. Use a close below the halfway point of the previous large bullish candle as your stop. 12/18 It's still moving up nicely, continue to hold. We still don't want to see it close back below the halfway point of the previous large bullish candle. That would definitely show a change of investor sentiment. 12/19 It reported an upgrade of their earnings expectations but it formed a Shooting Star/Doji in the overbought area. If this opens lower on Wednesday, take profits immediately. 12/20 It opened lower and started trading down. You should have taken profits immediately. If this was still in an uptrend, it should have opened higher and immediately started moving up. This one was closed out with a profit.
11/27 Bought GRS as it came back up through Monday's open. This one opened and started trading down. You shouldn't have bought it into the weakness but when it came back up through the opening price. It showed that, even in this market, the buyers were still there. Continue to be a buyer while anticipating that it could be setting up a J-Hook pattern, especially off of the recent gap up in price. Use a close below the 20 day moving average at the $13.50 area as your stop. 11/28 It continued its uptrend. It came back and tested the 20 day moving average one more time but then closed at a recent high. Look for it to start breaking out thorugh its current level. Use a close below the 200 day moving average as your stop. 11/29 It broke out through the upper level, continue to hold. It is forming a J-Hook pattern in its next leg up. 11/30 It had a bullish day but formed a Doji-type signal and the stochastics aren't quite up into the ove